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(Solved): 20. Division A makes a part with the following characteristics: Production capacity in units 15,000 ...



20. Division A makes a part with the following characteristics: Production capacity in units 15,000 units Selling price to outside customers $30 Variable cost per unit $20 Total fixed costs $60,000 Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A.Suppose that Division A has NO idle capacity to handle Division B's needs, What would be the minimum acceptable price that Division A would accept to transfer 5,000 units of the part to Division B? a. $30 b. $20 c. $10 d. $24



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